ANATOMÍA DENTAL 1 1

We conclude by returning to Alfred Marshall, who was keenly aware of the

evolutionary nature of productive systems and of the environments within which they are embedded. He viewed competition as “an activity, a process with evolutionary dimensions” (Kerstenetzky, 2010: 576), rather than a market structure; and he was concerned with “competitiveness” – of firms as well as local, regional and national productive systems. Marshall saw the evolution of industrial organization and development as encompassing different routes to industrialization and involving alternative organizational forms – including both large factories and small firms in industrial districts – that are variously inter-twined as they evolve and co-exist over time.21

After Marshall’s death in 1924, his methodological approach and evolutionary theory of industrial organization and development were increasingly abandoned as Neo-classical micro-economic theory focused attention on individual firms competing in particular market structures, instead of groupings of firms operating within localized productive systems and industrial sectors; and static equilibrium models of perfect, monopolistic and oligopolistic competition were developed to explain optimal output and employment levels of firms operating in these markets (Foss, 1994; O’Brien, 1990). Although Keynesian ideas were emerging to inform macro-economic policy during the 1930s and 1940s, Neo-classical micro-economic theories informed industrial policy; and the conventional wisdom came to view large scale production as the next stage of industrial evolution.

From a Marshallian perspective, the economic situation is a dynamic process of change and progress; and since Marshall’s time, financialization and globalization have fundamentally altered the character of the local, national and international environments within which firms and sectors in advanced industrial economies find themselves

competing. This has had a profound effect on the fate of the British industrial districts. Having virtually disappeared, older, surviving districts are re-vitalizing themselves; younger ones have emerged and are competing successfully in international markets; and new industrial ecosystems continue to appear. The vitality of Britain’s contemporary

21 _{Jensen (1990) interprets Marshall’s theory of industrial organization and development – particularly}

in relation to technology – as evidence of the institutionalist under-pinnings of Marshall’s approach.

industrial districts – despite decades of ill-informed policy choices, if not neglect – attest to the potential this form of industrial organization offers for industrial renewal.

From the cases analyzed above, it is clear that Britain possesses the entrepreneurial, production, and innovation capabilities required to successfully compete in global markets. However, in many ways, these businesses and the industrial clusters of which they form a part are succeeding against the odds. UK elite sport, on the other hand, has systematically set about stacking the odds in favor of its athletes and teams. The absence of a coherent

institutional framework, within which existing and future businesses and industrial ecosystems can develop the competitive capabilities required for success, is limiting the numbers of successful businesses and clusters, and thus the performance of the broader economy. In this, the UK elite sport system – which has been successfully developed and implemented in a British cultural and institutional context – provides an approach to building international competitive capabilities from which important lessons could be learned, with important implications for Britain’s industrial revitalization.

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Table 1. British Olympic Team’s Performance in the Summer Olympic Games Olympic Games Total Funding from UK Sport* (£millions) Number of Funded Sports* Number of Medals World Ranking

Gold Silver Bronze Total

Atlanta 1996 NA NA 1 8 6 15 36 th Sydney 2000 £58.9** 13 11 10 7 28 10 th Athens 2004 £ 71.0** 16 9 9 12 30 10 th Beijing 2008 £ 235.1 27 19 13 15 47 4 th London 2012 £ 265.1 27 29 17 19 65 3 rd Rio 2016 £ 274.5 20 27 23 17 67 2nd * Source: UK Sport, 2016.

** Figures for the Sydney and Athens Olympiads relate only to Podium level funding as during that time the Home Countries Sports Councils were responsible for supporting athletes at the Foundation and Podium Potential levels.